click below
click below
Normal Size Small Size show me how
Exam 4
Ch 18
Term | Definition |
---|---|
After-tax cash flow (ATCF) | the residual claim on the property's cash flow after the mortgage lenders and the state and federal government have collected their share |
Equity dividend rate (EDR) | The "capitalization rate" for equity. It is derived by dividing the before tax cash flow by the value of the invested equity capital. Sometimes referred to as the property's dividend rate/yield, also the "cash on cash return" |
Net income multiplier (NIM) | A cash flow multiplier calculated as the acquisition price divided by the net operating income |
Operating expense ratio (OER) | A measure of annual operating costs, defined as operating expenses divided by effective gross income |
Pro rate share | An amount proportionate to the ownership interest of an investor |